La conlusción no es el fin.
Throughout these past two months, I have surveyed and analyzed different avenues of growth in Cuba. While some have been positive, for example, the booming biotech industry and successful social programs in Cuba, there have also been certain avenues which growth is currently occurring that dim the prospects of Cuba’s future. I would like to take this blog post to recap Cuba’s development in the past couple of years and then bring these observations into discussion with the general topic of economic development.
As I noted before, the restoration of Diplomatic ties between the United States and Cuba has put Cuba back into the modern globalized world. From the media’s perspective, this change in foreign policy by the USA will bring positive attention to this previously forgotten Island. Tourists from abroad have pinned Cuba as the next hot spot: the lost paradise model sells. People come from all over: from Cold War enthusiasts to zealous cultural junkies. The United States has even christened Cuba’s appearance on the “modern map” with a visit from the President himself. However, this new tourist market on Cuba has eroding implications. As I have mentioned in a previous blog post, the centralization of economic growth in the tourist market has been monopolized by the country's government elite. Not only does this monopolization increase corruption in Cuba, it further fragments already broken institutions, those which many Cuban lives depend on. In addition, this movement towards socio-economic margins (the rich getting richer while the mass experience more poverty) impedes the chance for sustainable long term economic growth. However, it is important to notice that the focus on tourism has opened up the regime's control on personal economic property as Raúl Castro allows the privatization of hotels and restaurants. Yet, this new freedom has incentivized poor Cubans to risk their family’s well-being, personal home...etc in order for the chance to tap into tourist wealth. The sad reality is -- only few make it.
Economic liberalization and increase in foreign investment does not directly lead to growth. Instead, rapid introduction of this foreign capital overwhelms a struggling society and exacerbates current domestic problems. We see this in Cuba. So what’s the answer?
Foreign aid, a priori, can help developing countries expedite their process of development in order to modernize. Yet, if this foreign investment is directed to benefit the core states (Western world: in this case, tourism) economic growth fails. Instead, developed countries looking to help should help maintain a certain level of vigilance in the process and direct this economic growth in constructive infrastructure that reflects the needs of the citizens themselves. Aid tends to be blindly selfish. (I am not referring to bilateral governmental or institutional aid but rather an overall desire to promote growth in developing countries). On the other hand, growth should be overseen and assured to benefit the lives and prosperity of Cubans (or any prospective country) in order for them to have a secure grounding to embark on growth themselves.
Overall, the United State’`s and Western Europe’s recent relations with Cuba are based in good intentions. Personal interests, even interests to travel to Cuba, are inherently good as well. However, the means in which the modernized world interacts with this developing country will shape Cuba’s future. The success of Cuba is contingent on positive interactions. We have the intentions - so let’s focus on the people, on growth, on learning what is best for Cuba instead of what may be best for us. This is not just a conclusion but rather a start to discussion on how to mold efforts to work specifically for that country, rather than allowing the “invisible hand” of orthodoxical liberal economics go to work -- because that's not working.
